Market News

Demand supports soybeans, corn

Soybeans were higher on commercial and technical buying. USDA announced sales of 200,000 tons of U.S. soybeans to Spain and weekly export numbers were good. In that sale to Spain, 70,000 tons were for delivery this marketing year and the remaining 130,000 tons, switched from “unknown”, are for delivery next marketing year. The trade was watching planting weather, expecting scattered near term delays. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn was modestly higher on commercial and technical buying. Corn was also watching planting weather and the weekly export numbers were bullish with good sales and shipments. New USDA supply and demand numbers are out June 9th, updated acreage figures are due June 30th, and prevent plant numbers will be released in August. Ethanol futures were higher, with corn and ethanol futures not seeing any real impact from the planned U.S. withdrawal from the Paris Accord. Barring renegotiation, the U.S. withdrawal would not occur until 2020.

The wheat complex was mostly modestly higher on commercial and technical buying. Minneapolis was in the lead with better demand for higher protein varieties. The whole complex was up for a good portion of the day with support from the lower dollar, but wilted because of the large available world supply. Old crop exports were a net cancellation with a bearish week for shipments. The 2016/17 marketing year for wheat officially ended Wednesday, but there are a few reporting days left. Russia’s Ag Ministry estimates 2017 grain production at 100 to 105 million tons with new crop exports of 37 to 38 million tons. South Korea bought 64,000 tons of optional origin feed wheat.